Can people actually get banned from the game?

Just a question... Can people get banned from the game if they insult/creating inappropriate rooms/racism? Im just asking because i encountered some guy who wasn't able to live without insults per second, and probably doing some screenshots from his room name and conversations (if i should encounter him again).

For language or threats I don't think they can cause a mod presence is not around to carry out such discipline for such acts in-game.
The plan is one day like SSL we'll have a few in-game moderators but I know they would be only able to squash it out on the lobby. People would still have free reign in-game and a majority do that behind "these closed doers" as to say cause unless someone screens them they will get away with it and at the moment there is no sort of discipline awaiting them of any kind. (Happens in SSL still in this way)

The worst someone can do to get banned is hack the game in a substantial way or have their account be a public. Other than that sorry such banning doesn't exist at least not yet. Its quite a bummer though the community on SSL2 is crawling if not breeding with a good number of individuals causing havoc that way but Steam hopefully is the stepping stone to rid itself of it for the most part and then ways it uses can be used for the flash versions via in-game moderation.